Back to school financial tips for students

Students are set to head off to college and university with many valuables, but are they prepared for the financial risks?

Read: Teens need money smarts

Breaking and entering, as well as theft of valuables up to $5,000, accounted for 60% of police-reported property crime in 2011, finds Statistics Canada.

The most common stolen items are: jewellery, digital cameras, iPods, cash, gift cards, video gaming equipment, and computer equipment such as laptops, desktops and iPads, reports British Columbia Automobile Association (BCAA).

Fire is also a risk.

“Having to replace personal possessions all at once could put a financial strain on a student with a limited budget, or on parents paying for their child’s educational supplies and living expenses,” says Patricia Stirling, BCAA director of insurance underwriting.

This is why it’s important to purchase the right insurance.

Read: How to pick a property & casualty insurer

Find out if the student qualifies for coverage under their parent’s home insurance policy, and be aware of limits. Also, tell students to make a complete inventory (including photos and videos) of all items they’ll be taking with them, such as clothing and furniture.

Here are some tips for students living on campus.

• Keep belongings with you and never leave valuables in a car.
• Secure your bicycle and laptop by investing in a U-shaped bicycle lock, and a laptop cable lock.
• Always lock your doors and don’t leave keys hidden outside under a flowerpot or windowsill.
• Never leave an open flame or stove unattended.
• Regularly backup your digital data so if you are a victim of theft, you still have all important information.

Tax tips

Did you know a student living away from home might be able to claim a tax deduction for moving expenses?

Read: Canadian youth unrealistic about finances

There are other credits as well. He could get one for the cost of public transportation. And based on his program, he could get between $120 and $400, depending on if he’s full-time or part-time.

He could also receive credits for the costs of textbooks, tuition, interest on student loans and GST/HST.

So, tell students to hang on to their receipts.

Here are some more articles to prepare students as they head back to school.

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U.S. high schools eye financial literacy

Help clients take advantage of education deductions

Students stressed out over debt

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Parents come up short on education savings